BMW to invest $482m in new Brazil car plant: Sources
SAO PAULO (REUTERS) - German automaker BMW plans to invest 800 million Brazilian reais (S$482 million) to build a new assembly plant in Brazil, sources with direct knowledge of the project told Reuters on Friday.
BMW's finance chief Friedrich Eichiner told Reuters on Thursday that the company will submit an investment plan to the Brazilian government. He did not provide details on the size of the investment, pending the ongoing negotiations with the government.
The company decided to go ahead with the project after initially threatening to pull the plug on the entire endeavor following a tax hike on imported cars as well as uncertainty over new rules requiring carmakers use more local content.
With the fresh investment BMW is betting on reaping the benefits of the growing market for luxury cars in Latin America's largest economy.